The Coca-Cola Company has announced that it has completed the acquisition Costa Limited from Whitbread PLC, which was first announced on August 31, 2018. The US$ 4.9 billion deal transaction follows approval from regulatory authorities in the European Union and China. The European Commission said on Thursday it had cleared the sale of the Costa Coffee chain to U.S. drinks maker.
The EU executive said in a statement, “The Commission concluded that the proposed acquisition would raise no competition concerns because the companies do not sell the same products and the links between their activities are limited.”
Costa has operations in more than 30 countries. This gives Coca-Cola a significant footprint in the global coffee business.
James Quincey, CEO of The Coca-Cola Company, said, “We see great opportunities for value creation through the combination of Costa’s capabilities and Coca-Cola’s marketing expertise and global reach. Our vision is to use the strong Costa platform to expand our portfolio in the growing coffee category.”
Alison Brittain, Whitbread Chief Executive said,“We wish our friends and colleagues at Costa all the very best for their future success. Whitbread acquired Costa 23 years ago, when it had only 39 shops. Costa has grown to become a leading, international coffee brand, and Coca-Cola is the right partner to take Costa to the next stage of expansion.”